Enterprise-wide Risk Management (ERM): Yawn

Jeff For Banks

But managing risk across organizational silos is highly fragmented in FIs. Perhaps, as suggested by one attendee at the presentation, ERM could streamline risk management efforts to make reporting more relevant, less voluminous, and less labor intensive.

Don't let perfect be the enemy of very good in bank profitability.

Jeff For Banks

Even though the American Management Information in Financial Services (AMI fs ) considers me a certified cost accountant, I put to you that I am not. I think more like a profit center than a management accountant. But there is no management information that is exactly correct.

Top 5 Total Return to Shareholders: #1 BofI Holdings Inc.

Jeff For Banks

Not sure why you would have a high-brow attitude towards this bank, since its management team is made up of investment bankers, blue-chip consultants, and engineers (see here for management bios). Their efficiency ratio was 40% for their fiscal year 2011 (ended June 30, 2011).

Product Profitability Anyone? The JFB Pro-Growth Matrix

Jeff For Banks

A bank attorney spoke at a recent Financial Managers'' Society (FMS) meeting that I attended. Using analytics, product managers have the opportunity to migrate marginally profitable products into either "Stars" or "Cash Cows".

Does your bank achieve positive operating leverage?

Jeff For Banks

Growing absent success in these metrics means you are simply managing a more complex organization for no additional benefit. Jeff Note: The above post was excerpted from a soon to be published Financial Managers Society (FMS) white paper drafted by the author.

The 17 Fundamental Traits of Organizational Effectiveness

Jeff For Banks

Does the deposit operations manager know the implications on product costs for adding a software component? I recently read Harvard Business Review''s 10 Must Reads on Strategy and reviewed it in this blog.

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Top 5 Total Return to Shareholders: #2 Signature Bank

Jeff For Banks

From 2006 through the second quarter of 2011, the bank''s assets grew from $5.4 For cash management, call John, for a loan, call Jane, etc. But Signature simplifies for their clients, and lets their relationship manager find the resources necessary to serve client needs.

Top 5 Total Return to Shareholders: #5 - German American Bancorp

Jeff For Banks

Upon reviewing their investor presentations, annual reports, and financials, it is clear they are a conservatively managed, geographically focused financial institution. First was a strategy where management exercises the greatest control.

Is your strategy and organization built around the customer?

Jeff For Banks

Customer centric culture is most likely an industry buzz phrase similar to Total Quality Management and may evoke negative connotations. Total Quality Management supposed to reduce fail rates and therefore avoid unnecessary processes.

The Elephant in the Room: Branches

Jeff For Banks

We don''t want to manage multiple properties of former branches that sit stale on our books eating our capital. In keeping up with industry reading it is clear to me that we, as an industry, are perplexed at what to do about branching.

Banking: Data hungry and decision challenged?

Jeff For Banks

I had lunch today with a client''s regional manager. The senior management team did not know half of the customers on the list. I teach at the ABA School of Bank Marketing Management. We discussed many things, but one thing he told me stuck.

Community Financial Institutions: Parking Lot for the Benjamins

Jeff For Banks

From December 31, 2009 through June 30, 2011, deposits for all FDIC insured depositories increased 5.84%. At first, senior managers of FIs felt good about the inflow. The current market volatility has been with us for nearly three years.

Does "Evaluate Strategic Alternatives" mean the end of your bank?

Jeff For Banks

I recently spoke at a Financial Managers Society meeting packed with FI CFOs and controllers and asked the crowd what they thought "evaluate strategic alternatives" meant.

The coming bank consolidation. but not why you might think.

Jeff For Banks

If I had a nickel for every time an investment banker predicted the mass consolidation of our industry I could buy a free round to all attendees at next month''s Financial Managers'' Society Forum. With institutional shareholders such as asset managers, hedge funds, and the like.

Are the regulators getting you down?

Jeff For Banks

A third Article that is oft repeated in EAs is a management study, requiring the bank to hire a consultant to evaluate the board, senior management, and/or staffing levels. I understand that management studies are not particularly comfortable.

Top 5 Total Return to Shareholders: #3 ESB Financial Corporation

Jeff For Banks

Part of the secret sauce may be management longevity, as most senior managers, including CEO Charlotte Zuschlag, have been with ESB for 20 years or more. I was recently moderating a strategic planning discussion with a multi-billion dollar in assets financial institution.

Top 5 Total Return to Shareholders: #4 Bank of the Ozarks

Jeff For Banks

In 1979, George Gleason, a 25-year-old attorney, purchased controlling interest and assumed active management of the bank as Chairman of the Board and Chief Executive Officer. Collectively, the management team built an Arkansas franchise rivaling the largest banks in the state.

Does your strategy drive your structure? I doubt it.

Jeff For Banks

Past experience of Board members and/or Management; 2. Entitlement structure… making management positions and reporting lines to promote key managers; and 4. Regulatory requirements… maintaining certain Board and management committees, processes, and policies.

Will "Plain Vanilla" Kill Community Banking?

Jeff For Banks

Most recently Valley National Bancorp''s highly respected CEO, Gerald Lipkin stated: "The positive [fourth quarter] results are attributable to management''s common sense and highly focused approach to traditional banking — gathering deposits and making relatively low-risk loans." ?I

V-blog: Speaking of economies of scale to NY Bankers

Jeff For Banks

I recently spoke at a New York Bankers Association senior management conference regarding the quest for economies of scale to improve earnings through positive operating leverage.

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Book Report: The Lords of Strategy by Walter Kiechel III

Jeff For Banks

Management "fads" came and went. B+ This book, written by a journalist and former editor of Fortune magazine and editorial director of Harvard Business Publishing, tracks the growth and philosophical evolution of strategy.

The coming consolidation wave. for bank consultants.

Jeff For Banks

Consultants are typically highly specialized, such as asset-liability management, and geographically focused. Last year Millward Consulting merged with my firm. The combination gave Millward greater resources to serve clients, and my firm senior-level expertise to develop our talent, deepen our services, and expand our geography. At the time, I didn''t think much about a trend developing in bank consulting.

Guest Post: First Quarter Economic Update by Dorothy Jaworski

Jeff For Banks

The Missing People I usually do not obsess over economic data but I have been trying to figure out why the unemployment rate managed to drop from 9.8% Growth for 2011 Economists were stampeding over each other to raise their GDP forecasts to 3.5% for 2011 earlier this year after the surprise tax cuts for consumers and businesses. The World Around Us World events are impacting our markets. Unrest in the Middle East has already changed governments in Tunisia and Egypt.

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Occupy Wall Street: Occupy This!

Jeff For Banks

The bank need not be the only investor, but can run it profitably through management fees, the "ups", and diversification. The Occupy Wall Street gang seems to garner more press coverage than the state of the U.S. economy, the presidential election, and the MLB playoffs combined. In terms of media excitement, only the trial of Michael Jackson''s doctor competes. Who are these people and what do they want?

Bank Shorts: Sales Culture Gone Wild

Jeff For Banks

When I was a branch manager, I fondly recall competing with a friend and fellow branch manager for the quarterly sales title. My bank, First National Bank of Maryland, had a very transparent incentive compensation system. I could calculate my own and my team''s quarterly bonuses to the penny. It was called RAISE. Recognizing Achievement In Sales Excellence. The challenge was that it was a sales incentive system. So we sold.

Banker Quotes: As Told to Me v2

Jeff For Banks

JeffMarsico Bank fund manager to me: " Our investment criteria is great management teams, in great markets, with great core deposit franchises." I learn a lot from bankers as I visit their offices, speak to them on the phone or at industry events. Occasionally they will offer an insight that I think my Twitter followers would find interesting. Below are selected quotes that I tweeted this year along with my brief insights or background regarding the comment.

Guest Post: Third Quarter Economic Update by Dorothy Jaworski

Jeff For Banks

in the second quarter of 2011. DJ 10/05/11 Dorothy Jaworski has worked at large and small banks for over 30 years; much of that time has been spent in investment portfolio management, risk management, and financial analysis. Another Volatile Quarter I know I risk sounding too negative, but we cannot seem to shake the crisis mentality that keeps whipsawing bond and stock markets.

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Guest Post: Second Quarter Economic Update by Dorothy Jaworski

Jeff For Banks

2011 started with so much economic promise. Economists keep ratcheting down their projections for GDP for 2011 and 2012, probably as a result of the weaker forward looking indicators. Since the Great Recession began in December, 2007, until May, 2011, we are still down a net of 6.5 DJ 07/06/11 Dorothy Jaworski has worked at large and small banks for over 30 years; much of that time has been spent in investment portfolio management, risk management, and financial analysis.

Common Sense to Successful Strategy Execution

Jeff For Banks

Clarify the kinds of decisions that managers and rank-and-file can make at every level, and don''t second guess those decisions when made. Branch bankers are uncomfortable talking about cash management or financing with the small business owner. The title of this post is a modification to the original, The Secrets to Successful Strategy Execution , originally published in Harvard Business Review in 2008 by Booz & Co. consultants.

Experienced Bankers Wanted for Mediocre Bank

Jeff For Banks

One reason is that experienced branch managers tend to come from the old school, where taking care of customers once they come in the door is job 1, followed closely by ensuring the branch balances and branch cash is not off. If you hire for attitude in the branches, and get a good go-getter with a positive outlook as branch manager, but proceed to pay her minimally with little upside, she will seek promotions out of the branch. But branch managers are critical to our strategy.

Power to the People

Jeff For Banks

I have opined that bankers come in two general categories : balance sheet managers and customer managers. A strategy heavily focused on balance sheet management does not do much to differentiate one FI from another, and therefore does little to improve franchise value. If FIs seek to supplement their staff with more customer managers, maybe we should focus on attracting motivated, less experienced, but more malleable talent.

Guest Post: Fourth Quarter Economic Update by Dorothy Jaworski

Jeff For Banks

Then, just as rates hit these lows, Ben Bernanke and the Federal Reserve announced another gigantic quantitative easing program, called “QE2” by the markets, where they stated they will purchase $600 billion in Treasuries through mid year 2011. in GDP growth for 2011, giving us a chance to hit the 3% potential GDP level where jobs can be created in sufficient quantity to reduce the unemployment rate. What About 2011?

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Former Managing Director At Deutsche Bank Joins SWIFT 


David Watson, the former managing director and head of cash management for Deutsche Bank in the Americas, as well as the head of global digital cash products, has joined SWIFT as the new strategic relationship director in North America, according to a release.

Bank Managers Tied To AML Investigation In Brazil


Police in Brazil have raided the residences of managers of Banco do Brasil in connection to their part in a money-laundering scam worth $48 million. Police are looking into accusations that the managers were a part of laundering the money between 2011 and 2014. .

Own Your Program Management, Own Your Destiny


Being a program manager isn’t easy. If it’s not holding money or providing a payment network, the program manager does it: AML (anti-money laundering) compliance, KYC (Know Your Customer), fraud mitigation, marketing, privacy, document review, OFAC compliance, reporting and more. Perhaps that’s why companies like Cascade found themselves so frustrated working under a program manager. The startup remembers struggling to get its program up and running back in 2011. “We

Citi Hits Milestone In Mobile Treasury Management


The TTS unit, which links multinational corporations to cash management and trade finance solutions, revealed that it has now processed more than $1 trillion worth of transactions through its mobile and tablet solutions, CitiDirect BE Mobile and CitiDirect BD Tablet, since 2011.

Three market opportunities in Insurance Asset Management

Daily Fintech

The asset management side of insurance business is a sleeping beauty that hasn’t awoken to the Fintech drumming. Apart from the regulatory driven involvement due to Solvency II ( covered here ) I have not seen any laser focus from Fintechs in the asset management part of insurance businesses.

How to develop a robust risk management framework


This article updates Six stages to a robust operational risk framework, written by Richard Pike in September 2011. It explains how a financial services company can create and implement a stable and manageable framework for risk management.

Are you doing enough to help customers manage their accounts?


With the Consumer Financial Protection Bureau (CFPB) raising concerns that banking customers in the US “continue to experience problems managing their accounts”, it seems that many financial institutions could benefit from refocusing their efforts on delivering the services people want.

How to Successfully Manage Your Real Estate Owned (REO) Portfolio

SWBC's LenderHub

Based on market data from leading property information and analytics providers, foreclosure rates are down from peak levels in January 2011; however, are still high when compared to historical trends. Risk Management

Reinventing School: 108 Ed Tech Startups Across Learning Management, Language Teaching, And More

CB Insights

The ed tech industry is becoming increasingly global, with the US share of ed tech deals falling to 60% in 2015, down from 80% in 2011, as the UK, India, and China took more ed tech financings. This diversity is also seen … Continued. Ed Tech Education Technology ed tech

Reinventing School: 106 Ed Tech Startups Across Learning Management, Language Teaching, And More

CB Insights

The ed tech industry is becoming increasingly global, with the US share of ed tech deals falling to 60% in 2015, down from 80% in 2011, as the UK, India, and China took more ed tech financings. This diversity is also seen … Continued. Ed Tech Education Technology ed tech

Decision Management Maturity: Raise Yours at FICO World


The McKinsey Global Institute, in a 2016 follow-up of a major, earlier Big Data study, said, “Back in 2011, the McKinsey Global Institute published a report highlighting the transformational potential of big data. In fact, we now believe that our 2011 analysis gave only a partial view.”

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